The risk-free rate is 3.3 percent and the market expected return is 12 percent. What is the expected return of a stock that has a beta of 1.18?
Multiple Choice
18.92%
17.46%
13.57%
15.51%
12.06%
Expected return=risk-free rate +Beta*(market rate- risk-free rate )
=3.3+1.18*(12-3.3)
which is equal to
=13.57%(Approx).
The risk-free rate is 3.3 percent and the market expected return is 12 percent. What is...
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